A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p=85-0.2D (D is the demand or quantity sold per month and p is the price in dollars). The fixed cost is $1,500 per month and the variable cost is $20 per unit produced. a. What is the maximum profit per month for this product? b. What is the range of profitable demand during a month?

A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p=85-0.2D (D is the demand or quantity sold per month and p is the price in dollars). The fixed cost is $1,500 per month and the variable cost is $20 per unit produced. a. What is the maximum profit per month for this product? b. What is the range of profitable demand during a month?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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